Punjab National Bank (PNB) said that India Ratings and Research (Ind-Ra) has affirmed the bank's long-term issuer rating at 'IND AAA' with a 'Stable' outlook and short-term issuer rating at 'IND A1+'.
The agency has also assigned PNB's new additional Tier 1 (AT1) bonds a rating of 'IND AA+' with a 'Stable' outlook.
The long-term issuer rating factors in PNB's systemically important position and Ind-Ra's expectations that the bank will continue to receive support from the government of India.
The rating also considers PNB's demonstrated equity raising ability, further plans for the same and the likelihood of improved material profitability over FY22-FY23, which could help the bank maintain and possibly grow its market share in advances and deposits.
PNB is a public sector bank. It had a domestic branch network of 10,528 branches, two international branches and 13,506 automated teller machines as of September 2021. The Government of India held 73.15% stake in the bank as on 30 September 2021.
The bank reported 78% rise in standalone net profit to Rs 1105.15 crore in Q2 FY22 from Rs 620.81 crore in Q2 FY21. Total income during the quarter declined by 8.7% YoY to Rs 21,262.32 crore.
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